Gold prices fell even as bond yields tracked stocks lower and the priced-in rate hike path implied in Fed Funds futures flattened Friday. The US Dollar found renewed haven appeal against the risk-off backdrop, and its rise undermined the appeal of anti-fiat alternatives epitomized by the yellow metal.
Looking ahead, gold may continue to suffer as risk appetite recovers. S&P 500 futures are pointing convincingly higher ahead of the opening bell on Wall Street, hinting that a recovery in yields is poised to pressure non-interest-bearing alternatives.
For its part, the Greenback seems to have become adept at pivoting from haven- to policy-based arguments for gains. Indeed, it is marching higher alongside US stock futures and Treasury yields in late Asia Pacific trade. More of the same is a toxic mix for gold.
Gold prices pushed through range support in the 1211.05-14.30 area, exposing a rising trend line at 1198.51. A further push below that targets the 1180.86-87.83 zone. Alternatively, a move back above 1214.30 exposes the 1260.80-66.44 region next.